Kerala govt to take over Rs 18.75 crore loans of Wayanad disaster victims; decision taken in cabinet meeting

THIRUVANANTHAPURAM: The cabinet meeting decided to take over the loan liability of those affected by the Mundakkai and Chooralmala landslides in Wayanad. The total liability of 1620 loans taken by 555 people affected by the disaster, amounting to Rs. 18.75 crore, will be taken over. The amount for this will be taken from the Chief Minister's Distress Relief Fund.

The state government had approached the centre several times, demanding a waiver of the loans. The court had also directed this to be done. With the central government delaying a decision, the state decided to take over the loan liability. Families included in the rehabilitation list, family members of those who died in the disaster, and business establishments and shops will benefit from this.

The government will hold discussions with the state-level bankers' committee as part of the loan takeover. Currently, the government announced a moratorium on loans from July 30, 2024. The government will also demand in the meeting that interest from that date should be waived and that the CIBIL score of disaster victims should not be reduced.